Digital Sourcing

The economy is flattening out - seller's markets are turning into buyer's markets again!

In times of economic change, the moment has come to analyze one's own spend cube and to review the supplier portfolio built up over previous years with regard to cost savings and relevance.

Due to the decline in demand caused by the economic downturn, previous seller markets are turning into procurement markets. This results in changing conditions per se and, in particular, falling procurement prices. Without taking these circumstances into account, supplier relationships that were established in the upswing to this point to secure capacities cause excessive material and process costs, quality problems and an inadequately broad supplier portfolio. In the case of suppliers, on the other hand, global overcapacities arise and can be used to reduce material costs.

But how can companies exploit the potential now emerging in the short term and realize corresponding cost reductions? The use of TMG's Big Data- and AI-supported Digital Sourcing approach is particularly important here. The method makes it possible:

• reduce material costs in purchasing with existing or new suppliers at short notice
• generate AI-supported arguments for supplier negotiations
• consolidate the supplier portfolio at short notice
• reduce process costs and expenses in strategic purchasing

by means of

• data-based identification and validation of new suppliers – worldwide and independent of language
• efficient surveying of global price benchmarks – highly individual and specific with regard to the required materials
• binding offers from the identified suppliers after only a few weeks.

Using this material cost reduction approach, we offer up to 100% variabilization of the TMG consulting fee based on the savings achieved. Realize short-term savings in purchasing – without risk!